Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

High Price of Gold Disrupting International Love

  by    0   2

The price of gold is up 26% for the year so far. Overall, the price increase is beginning to change investor portfolios, as more people consider buying gold and other precious metals. However, the hike in gold prices is also starting to influence governments and cultures all over the world, from Japan scouring the ocean floor for gold to Egypt changing its long-held marriage rites.

two gold wedding rings

Should’ve put a Ring on it

According to an Egyptian marriage tradition known as “shabka,” a groom is expected to buy an apartment and pay a dowry for the hand of his future wife. He’s also expected to bring the bling in the form of gold jewelry. However, this long time tradition may be changing due to the rise in gold prices. Many Egyptian grooms are complaining of the financial hardships of shelling out for non-practical items such as jewelry.

According to a BBC article, the “price for one gram of 21-carat gold has reached 445 Egyptian pounds,” (around $50 USD) at the time of the writing. This may seem like a trifle, but the Egyptian yearly median income is around $70,000 EGP. If the average Egyptian groom bought their intended just one simple 21-carat band weighing 10 grams, they would be spending more than 6% of their annual income.

A campaign against the shabka tradition is gaining support in Egypt, with some suggesting grooms buy silver as a substitute.

India Weddings Boon for Gold

As the second largest gold consumer on the planet (China is first), India is anticipating a big jump in gold sales with the start of the wedding season. In the last half of the year, festivals like Dhanteras take place which is a time for celebrating wealth. The December quarter usually “accounts for about a third of India’s gold sales.”

Currently, India has seen gold imports fall with the higher prices, but analysists expect wedding festivals and cultural events surrounding gold to jumpstart the country’s insatiable desire for the yellow metal. Low demand has been accompanied by record discounts and a rise in smuggling and scrapping of gold, according to The Times of India.

Whether you’re looking to buy your beloved a golden trinket or maybe diversify your portfolio, buying gold and silver bullion is a great investment for your future wealth or spouse.

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]

READ MORE →

Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

READ MORE →

JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.

READ MORE →

American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]

READ MORE →

Demand for Silver in Electronics Sector Projected to Surge

The demand for silver is expected to expand along with the continued growth in global connectivity. According to a report released by the Silver Institute, silver demand in electronics and electrical applications is projected to rise by 10% by 2025.

READ MORE →

Comments are closed.

Call Now